6. Insurance companies track life expectancy information to assist in determining the cost of life insurance...
Show all work: Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. Last year the average life expectancy of all policyholders was 77 years. ABI Insurance wants to determine if their clients now have a longer life expectancy, on average, so they randomly sample some of their recently paid policies. Suppose ABI samples 100 recently paid policies. This sample yields a mean of 77.7 years and a standard deviation of 3.6 years. Find...
Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. The insurance company knows that, last year, the life expectancy of its policy holders was 77 years. They want to know if their clients this year have a longer life expectancy, on average, so the company randomly samples some of the recently paid policies to see if the mean life expectancy of policy holders has increased. The insurance company will only change their premium...
Insurance Companies track life expectancy information to assist in determing the cost of life insurance policies. Last year the average life expectancy of all policy holders was 77 years. ABI Insurance wants to determine if their clients now have a longer life expectancy, on average, so they randomly sample some of their recently paid policies. The ages of the clients in the sample are shown below. 86 75 83 84 81 77 78 79 79 81 76 85 70 76...
Insurance companies track life expectancy information to assist in determining the cost of life insurance policies. Life expectancy is a statistical measure of average time a person is expected to live, based on a number of demographic factors. Mathematically, life expectancy is the mean number of years of life remaining at a given age, assuming age-specific mortality rates remain at their most recently measured levels. Last year the average life expectancy of all the Life Insurance policyholders in Ontario...
Insurance companies know the risk of insurance is greatly reduced if the company insures not just one person, but many people. How does this work? Let x be a random variable representing the expectation of life in years for a 25-year-old male (i.e., number of years until death). Then the mean and standard deviation of x are μ = 49.3 years and σ = 11.1 years (Vital Statistics Section of the Statistical Abstract of the United States, 116th Edition). Suppose...
Insurance companies know the risk of insurance is greatly reduced if the company insures not just one person, but many people. How does this work? Let x be a random variable representing the expectation of life in years for a 25-year-old male (i.e., number of years until death). Then the mean and standard deviation of x are μ = 49.0 years and σ = 10.3 years (Vital Statistics Section of the Statistical Abstract of the United States, 116th Edition). Suppose...
For a life insurance company, it is important to construct life tables (consisting of the probability that a person will survive in the next year, conditional on a person that has been survived up to current). A life insurance company uses life tables to assist calculation of life insurance premium. Assume that the lifetime of randomly selected person is approximately normally distributed with a mean 68 years and a standard deviation 4 year. A whole life insurance implies that insurance...
What types Of marketing messages should each of the three life insurance companies design to reach consurners such as John and Sandy. for either the information search. evaluation of alternatives. or both Stages Of the buying decision marking process? ohn Mulvaney just reached an important milestone in his life-birth of his first child. After seven years as a DINK (dual income-no kids) family, he and his wife Sandy decided it was time add a new member. At that point the...
Jennifer Nguyen, a Humber College Healthcare Management program graduate insurance who always had only perfect marks in statistics, was hired by the famous Healthy Life medical insurance company. Jennifer is assigned to conduct statistical analysis of medical and financial data. As Jennifer is on probation, please help her to complete the following six tasks. In problems 2-6, state hypotheses Ho and H and provide detailed conclusions (based on P-values or critical values/test statistics) together with the Excel output. For your...